1. What are the strengths and weaknesses of the Calyx & Corolla formula?
●Through working closely with the supplier or grower Calyx & Corolla provides a much fresher product to the customer than their competitors.
Through Federal Express
Calyx & Corolla have an excellent relationship with the growers. Calyx & Corolla uses
30 quality growers to supply their flowers. The top eight of these growers supply close to 80% of their orders, however no one grower supplies more than 25% of its products to Calyx & Corolla (Wylie and Salmon, 1999). Calyx & Corolla has exclusivity agreements with all growers they do business with. The management of Calyx & Corolla works very closely with the growers on a continual basis to ensure that quality arrangements and packaging are achieved.
Growers are paid wholesale prices and an extra surcharge to provide the extra services of
arranging and packaging the flowers. To accomplish these extra services or retail
responsibilities, the growers employ additional people. Calyx & Corolla senior managers stay in close contact with representatives from each grower they do business with to collaborate on availability of flowers, arrangements, schedules, accessories and packaging supplies.
Calyx & Corolla's relationship with their shipper, Federal Express, is just as strong and
critical as their relationship with the suppliers. They have a special contract with Federal
Express that includes special handling of the packaged flowers. During peak periods, Federal
Express provides trailers to the growers to expedite the shipping process. During adverse
conditions, such as extreme weather, Federal Express provides extra delivery services by not
leaving packages in situations where the flowers could be damaged or ruined. To help track
shipments and provide better customer service, Federal Express provides computer terminals to...